What Skype does

Skype was a telecommunications platform that pioneered free peer-to-peer voice and video calling over the internet, founded in 2003 by Niklas Zennström and Janus Friis and originally incorporated as Skype Technologies S.A. in Luxembourg. The service enabled internet-connected users on Windows, macOS, Linux, iOS, Android, and (later) web browsers to make free voice and video calls to other Skype users worldwide, with paid services including Skype Credit for calling landlines and mobiles and Skype Manager for small business accounts. Skype's core technology relied on a peer-to-peer architecture that routed calls directly between user endpoints, avoiding dedicated server infrastructure and enabling rapid scaling to 54 million users by 2005.

The company grew rapidly and was acquired by eBay in 2005 for $2.6 billion, then sold to Microsoft in 2011 for $8.5 billion, after which it operated as a wholly-owned Microsoft subsidiary. Under Microsoft, Skype coexisted with Microsoft Teams before being discontinued on May 5, 2025, as Microsoft consolidated its communication products behind Teams. In April 2026, Estonia announced plans to relaunch Skype as a sovereign European communication platform, positioning it as a data-sovereignty alternative to US-based incumbents; the operational and financial details of any relaunch are not disclosed in the available data.

Name

Skype

Legal name

Skype Technologies S.A.

Website

https://skype.com

Company type

Private

Founded year

2003

Operating status

Closed

Headcount range

1,001–5,000 employees

Short description

Skype provided free peer-to-peer voice and video calling over the internet to consumers and SMBs worldwide. Founded in 2003, it was acquired by eBay in 2005 and Microsoft in 2011 for $8.5 billion, before Microsoft discontinued the service on May 5, 2025.

Ownership category

akta.pro rank

Product category

Video Conferencing & VoIP Services

NAICS

All Other Telecommunications (517810)

SIC

Services-Telephone Interconnect Systems (7385)

akta.pro primary industry

Voice Calling (VoIP) Apps (BPAMACAC)

Keywords

• Voice over IP
• Video conferencing
• Peer-to-peer calling
• Instant messaging
• Internet telephony

Headquarters

HQ city

Luxembourg

HQ country

Luxembourg

HQ region

Europe

Markets served

GTM type

B2C

Offering type

Software

Cost components

Technology or R&D, Infrastructure, Personnel, Operations, Marketing or Sales

Distribution channels2 records

Core offering

Skype provided a telecommunications platform enabling free peer-to-peer voice and video calls over the internet between Skype users worldwide, along with paid outbound calls to landlines and mobile phones, instant messaging, screen sharing, conference calling, and file sharing. Originally launched in 2003, the service was offered via downloadable clients for desktop (Windows, Mac, Linux) and mobile (iOS, Android), and later via web browser.

Product overview

Skype was a video conferencing and voice calling platform that enabled free peer-to-peer voice and video calls over the internet, as well as paid calls to landlines and mobile phones. Originally launched in 2003, the service grew to 54 million users by 2005 and was acquired by eBay for $2.6 billion in 2005, then sold to Microsoft in 2011 for $8.5 billion. Microsoft discontinued Skype on May 5, 2025, as it shifted focus toward its Microsoft Teams product. Estonia has announced plans to relaunch Skype as a sovereign European communication platform.

Differentiator

Problem solved

Functional benefit

Products and services

• Skype Telecommunications platform providing free peer-to-peer voice and video calls over the internet between Skype users worldwide, paid outbound calls to landlines and mobiles (Skype Credit), instant messaging, screen sharing, conference calling, and file sharing, available across desktop and mobile clients. Targeted at general consumers and small/medium businesses. The service was discontinued by Microsoft on May 5, 2025.
• Skype Manager Business administration tool enabling organizations to centrally manage multiple Skype accounts, allocate Skype Credit to users, control features, and oversee Skype usage across an organization. Targeted at small/medium businesses adopting Skype for communication.
• Skype Credit Prepaid credit balance allowing users to place outbound calls from Skype to traditional landline and mobile phone numbers worldwide at low per-minute rates. Targeted at individual consumers and businesses needing affordable international calling.

Segments1 record

Ideal customer profiles1 record

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

One partnership is on record.

• EstoniacoreStrategic or Co-development Partner · 1 April 2026Estonia plans to relaunch Skype as a sovereign European platform, positioning it as an alternative to American tech platforms. This represents a strategic initiative to establish a European-controlled communication platform with data sovereignty principles.

Scale indicators3 records

Recent moves6 records

Expansion highlights4 records

Broad incumbents

• Microsoft Teams: Microsoft's enterprise communication and collaboration platform that succeeded Skype within Microsoft's portfolio. Directly comparable as a free/low-cost internet-based voice and video calling platform with chat and conferencing features.
• Google Meet: Google's video conferencing service offering free and enterprise-tier internet-based meetings. Comparable to Skype as a broad consumer + enterprise video calling platform with web-based access and global distribution through Google's ecosystem.
• Cisco Webex: Enterprise-focused video conferencing and unified communications platform. Comparable to Skype on its paid business communications side, particularly the Skype Manager for business accounts and Skype-to-phone paid services.
• Apple FaceTime: Apple's built-in free video and voice calling service for iOS/Mac users. Comparable to Skype as a free, internet-based video calling solution for consumers, with deep integration into a major device ecosystem.

Direct peers

• Zoom: Leading video conferencing platform offering free and paid internet-based video calling for consumers and businesses. Directly comparable to Skype's core proposition of free/low-cost video calling and conference calls, and named alongside Skype as a key market player.
• WhatsApp: Meta-owned free messaging and voice/video calling app used globally on mobile. Directly comparable as a free, internet-based P2P-style communication tool with massive network effects — the consumer incumbent Skype most directly competed with in mobile.
• Viber: Free VoIP and messaging app offering voice/video calls and low-cost international calls to landlines and mobiles. Closely comparable to Skype's freemium model, paid international calling revenue stream, and consumer-focused positioning.

Emerging players

• Discord: Voice, video, and text communication platform with strong community/group chat DNA. Comparable to Skype's group chat and voice/video features and particularly relevant to the community/segment Skype historically served.
• Telegram: Cloud-based messaging app with free voice/video calling and large group chat. Comparable to Skype's instant messaging, voice/video calling, and group features, with particular overlap in cross-border consumer communication.
• Signal: Privacy-focused free messaging and voice/video calling app. Comparable to Skype as a free internet communication tool, with privacy positioning that aligns with potential sovereign European relaunch narratives around data protection.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• Xx.com/skype
• Facebookfacebook.com/Skype
• LinkedInlinkedin.com/company/skype

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds5 records

Investors8 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A3 records

Investments3 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Skype